Long-term international financing typically refers to which market?

• A. Eurocurrency market
• B. Eurobond market
• C. Eurocredit market
• D. International FX market

Answer: (B)

Long-term international financing is about raising funds that will be repaid over several years from investors around the world. The instrument used for this across borders is bonds issued to international buyers, known as the eurobond market. These are debt securities issued outside the issuer’s home market, typically in a foreign currency, with long maturities that suit expansion or large-scale projects. This setup lets a borrower tap a global pool of capital for many years.

In contrast, the eurocurrency market mainly handles short-term deposits and loans in currencies outside their home market, not long-term financing. The eurocredit market involves bank loans and is generally considered medium-term rather than truly long-term. The international FX market is about exchanging currencies and managing exchange-rate risk, not raising long-term funds. So for long-term international financing, the eurobond market is the most relevant.